MLO Ltd operates a chain of handbags around the country. You have been provided

with the following projections for the company $($in crores of Rupees$)$

Particulars $1234($ Terminal year$)$

EBIT $120\mathrm{.}00135\mathrm{.}00166\mathrm{.}25174\mathrm{.}06$

Net Capex $40\mathrm{.}0047\mathrm{.}5056\mathrm{.}5042\mathrm{.}00$

Total Working Capital $708092100$

Cost of Equity $13\%12\%12\%11\%$

Pre$-$Tax Cost of Debt $9\%8\mathrm{.}50\%8\%8\%$

Debt to Total Assets $30\%30\%30\%30\%$

The company has a tax rate of $30\%,$ but it has net operating losses of $195$ crores

that it is carrying forward. The firm will grow at $6\%$ forever, starting in year $4.$ The

working capital currently is $62$ crores.

a$.$ Estimate the expected cash flows to the firm for the next $4$ years. $(5$ marks$)$

b$.$ Estimate the cost of capital each year for the next $4$ years. $(5$ marks$)$

c$.$ Estimate the terminal value. $(2$ marks$)$

d$.$ Estimate the value of the firm today. $(3$ marks$)$